Melco Resorts & Entertainment has officially halted its plan to sell its stake in Manila's "City of Dreams". Chairman Lawrence Ho stated that after a comprehensive strategic assessment, the company believes that no sale option can truly unlock the potential value of the project, and is confident that the business will rebound as the market environment improves. Simply put, they feel that selling now is not worthwhile, and it's better to wait. Despite a nearly 50% drop in the project's revenue in Q4 2025 compared to the previous year, factors such as visa-free entry for Chinese tourists, upgrades to Manila airport, and consolidation of the online gambling market keep Melco optimistic about recovery. This year, the company plans to invest $40 million in operational expenses for the project. Want to know the latest insights on capital movements in Asian integrated resorts? PASA's official website continues to track industry dynamics.
One, Sale Plan Shelved: Valuation Did Not Meet Expectations, May Reconsider in the Future
Melco Resorts first announced a "strategic options assessment" for the Manila project in February 2025, sparking market speculation about a sale. A year later, the conclusion is finally in place—no sale. Lawrence Ho openly stated that the existing options could not fully reflect the property's value, and the landlord Belle Corporation had already expressed disinterest in taking over, instead focusing on developing Clark.
"We are confident in the business rebound, and may reassess in the future," Lawrence Ho said during the earnings call. This means that "City of Dreams" will remain Melco's core stronghold in the Philippines for the short term.
Two, Performance Under Pressure: Sharp Decline in Q4 Revenue, All Indicators Deteriorated
The other side of the decision to shelve the sale is the reality that the project is unlikely to fetch a good price in the short term. In Q4 2025, key metrics for Manila's City of Dreams worsened significantly compared to the previous year:
Operating Income: $17.82 million (Q4 2024 was $34.09 million), plummeted by 47.7%
Adjusted Property EBITDA: $33.05 million (Q4 2024 was $56.79 million), down 41.8%
Total GGR: $110 million, down 26%
VIP Room GGR: $21 million, -40%
Main Floor GGR: $42 million, -28%
Slot Machine GGR: $47 million, -17%
VIP Rolling Chip Volume: $469 million, -39%, win rate dropped to 4.47%
Main Floor Rolling Chip Volume: $129 million, -23%, win rate dropped to 32.4%
The project currently operates 265 gaming tables and 2264 slot machines, with losses reflected in the performance data by Melco's shareholding.
Three, Betting on Recovery: Visa-Free + Airport Upgrade + Online Market Cleanup
Despite the grim data, Melco's management remains optimistic about the long-term trend of the Philippine market. Lawrence Ho specifically highlighted three positive signals:
Implementation of visa-free policy for Chinese tourists: Expected to accelerate the return of international visitors
Completion of Manila airport upgrades: Enhances entry convenience, supporting tourism recovery
Advancement in the integration of the online gambling market: A compliant ecosystem is gradually forming, reducing grey market competition
In 2026, Melco plans to invest $40 million in operational expenses for the Manila project, maintaining competitiveness during industry headwinds. "Competitive pressure and industry obstacles" remain, but policy dividends have begun to be realized.
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